ElvalHalcor Group remained on an upward trend in the first half of 2024, despite sluggish economic activity in Europe, high inflation, geopolitical crises and increased economic uncertainty.

ΚΕΥ DEVELOPMENTS

ElvalHalcor presents organic profitability (a-EBITDA) of EUR 113.8 million, high operating cash flows, a reduction in net debt by €144.5 million, and optimization of working capital by €107.7 million as of 30.06.2023 in its financial results announcement for the first half of 2024.

In particular, sales volume increased by 2.5% compared to the same period in 2023. This increase was 3.3% excluding the impact of ETEM's deconsolidation in Q1 2023, which was primarily due to higher sales of products for rigid packaging in the Aluminium Division.

Group turnover was €1,723.6 million in the first half of 2024, down 3.8% compared to €1,791.0 million in the corresponding period of 2023, influenced by lower processing prices and sales mix. Metal prices on the LME moved to high levels at the beginning of Q2 2024 but subsequently declined, showing volatility. The average aluminium price was €2,181 per tonne in H1 2024 compared to €2,155 per tonne in H1 2023, an increase of 1.1%. The average price of copper was 8,410 euros per tonne compared to 8,054 euros per tonne in the same period last year, up 4.4%, and the average price of zinc was €2,442 per tonne in the first half of 2024 compared to €2,624 per tonne in the first half of 2023, a decrease of 6.9%. 

Consolidated gross profit amounted to €141.2 million in the first half of 2024, compared to €120.1 million in the same period last year. Adjusted consolidated earnings before interest, taxes, depreciation, amortization, net income, and other extraordinary income and expenses (a-EBITDA), which better reflects the group's organic and cash profitability, decreased by 13.1% to €113.8 million in the first half of 2024 compared to €130.9 million. Correspondingly, consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) were €115.1 million compared to €100.6 million in the first half of 2023, as a result of accounting gains of €7.0 million, compared to a loss of €29.3 million in the first half of last year. 

The consolidated net financial result (cost) for the first half of 2024 decreased by 11.3% to €23.5 million from €26.4 million. This change was due to a significant reduction in net debt of €144.5 million from H1 2023 as a consequence of the Group's enhanced free cash flow resulting from the successful working capital management and the slowdown in investments following the completion of the major investment projects in the Aluminium Division. 

The Group has also taken the necessary steps to contain its financial costs from the significant increase in benchmark interest rates, achieving, at the end of the period, 61% of total borrowings at fixed rates. 

Consolidated profit before tax amounted to €59.9 million for the first half of 2024, compared to €38.7 million for the first half of 2023, while consolidated profit after tax and minority interests amounted to €50.9 million for the period (or EUR 0.1250 per share), compared to €28.8 million for the same period in 2023 (or EUR 0.0691 per share).

COMMENTS

Commenting on the results, the General Manager of the Aluminium Sector, Nikolaos Karabateas, said: "In the first half of 2024, ElvalHalcor's Aluminium Division continued to grow its sales volume, utilising the additional capacity resulting from our latest investment program. At the same time, we achieved a further reduction in working capital, which, combined with limited capital expenditure, led to a significant reduction in the Aluminum Division's net debt. In the second quarter of 2024, a reversal of the negative trends that prevailed in the first quarter in certain sectors, such as the aluminium foil sector, was seen, although prices remained at the same levels."